Punjab finance, excise and taxation minister Harpal Singh Cheema said on March 3, 2026 that Punjab has moved into the top three states in the country in revenue growth, attributing the change to higher own tax revenue and improved collections from excise, GST and stamp duty during the Aam Aadmi Party government’s term.
Punjab finance, excise and taxation minister Harpal Singh Cheema said on March 3, 2026 that Punjab has moved into the top three states in the country in revenue growth, attributing the change to higher own tax revenue and improved collections from excise, GST and stamp duty during the Aam Aadmi Party government's term.
Speaking at a press conference in Chandigarh, Cheema said the state's own tax revenue increased from ₹37,327 crore in 2021-22 to ₹57,919 crore in 2024-25. He said the ratio of own tax revenue to gross state domestic product rose from 6.39% to 7.15% over the same period, and described the shift as an outcome of tighter compliance and administrative changes.
Cheema presented excise receipts as a key contributor to the state's revenue profile. He said excise revenue rose by 86.77% in less than four years, and compared the current term's collections with those of the previous two governments. He said the Akali Dal BJP government collected ₹20,545 crore in excise revenue across five years, while the Congress government collected ₹27,395 crore across its five-year term. Cheema said the current government collected ₹37,975 crore up to January 2026, which he said translates into a higher annual average than earlier periods.
He said excise revenue was ₹6,157 crore in 2021-22 and is projected to touch ₹11,500 crore in 2025-26. He also said excise receipts as a share of GSDP rose to 1.28% in 2024-25 from 1.05% in 2021-22.
On GST, Cheema said the state recorded a sharp increase in collections, and contrasted it with the previous term's reliance on GST compensation. He said Punjab collected ₹83,739 crore up to January 2026, compared with ₹61,286 crore during 2017-22, and said the annual average under the current term was higher. He said state GST revenue was projected to cross ₹26,500 crore in 2025-26, up from ₹15,542 crore in 2021-22.
Cheema also cited stamp duty as another area of higher receipts. He said the state collected ₹19,515 crore in stamp duty up to January 2026, compared with about ₹12,400 crore collected in each of the previous two five-year terms, and said the annual average under the current term was about ₹5,091 crore.
Cheema said the government had increased capital expenditure, which he argued is necessary to sustain growth and improve public infrastructure. He said capital expenditure stood at ₹14,641 crore during the Akali Dal BJP term and ₹19,356 crore during the Congress term, while the current government was set to spend ₹31,630 crore.
On debt, Cheema said the government inherited liabilities of about ₹3 lakh crore and claimed most new borrowing is being used to service past debt and interest obligations. He said the debt to GSDP ratio has come down from 48.25% to 44.47% during the current term.
He also pointed to provisions for implementing the pay commission and clearing arrears, along with financial support extended to state-run institutions that he described as stressed. Cheema said Punjab also increased its reserve buffers through higher balances in the consolidated sinking fund and the guarantee redemption fund kept with the Reserve Bank of India.
Cheema linked the fiscal strategy to what he described as reduced central support. He said Punjab received ₹72,340 crore during 2017-22 through revenue deficit grants and GST compensation, while the state received ₹27,832 crore up to January 2026, adding that these grants have now stopped.
Opposition parties have questioned the state's debt and spending trajectory. Punjab Congress president Amarinder Singh Raja Warring has claimed the state's debt has crossed ₹4 lakh crore and has asked the government to clarify how future spending commitments will be financed.